Daniel Loeb

Daniel Loeb

Last Update: 03-01-2017

Number of Stocks: 38
Number of New Stocks: 12

Total Value: $10,188 Mil
Q/Q Turnover: 26%

Countries: USA
Details: Top Buys | Top Sales | Top Holdings  Embed:

Daniel Loeb Watch

  • Daniel Loeb Picks Up Rate-Sensitive Financials, Drops Pharma

    Daniel Loeb (Trades, Portfolio)’s weighting in financial services expanded to 14.4% from 6.3% in the fourth quarter, as he bought shares of three big banks and nixed several positions in health care.


    The manager of Third Point hedge fund dropped pharma company Allergan (NYSE:AGN) from his portfolio after blaming it and Amgen (NASDAQ:AMGN) for low returns in his equity portfolio, which gained 6.1% for the quarter, versus a 12% rise in the S&P 500. Loeb opted for more balance entering January, but shifted his strategy when Donald Trump’s victory in the 2016 presidential election took him by surprise.

      


  • Daniel Loeb's Third Point Hedge Fund 4th Quarter Commentary

    Review and Outlook

      


  • 5 Stocks That Have Gotten Cheaper in Market's All-Time High

    President Donald Trump takes credit for many things, but he can unmistakably be credited for the market’s sudden rise to record highs since his victory in the Electoral College. While the S&P 500 has gained 5.6% since Nov. 8, not all companies have benefited from the so-called “Trump bump,” particularly in sectors cowering from negative projections of his stated opinions and policies.


    Health care, hanging in limbo with the potential repeal of Obamacare looming, is the only S&P 500 sector to decline in the past year. It’s down 2.35%, though its constituents still carry a relatively high P/E of 32.02, compared to 26.1 for the index. A closer look shows that the two health care industries to fall the most over the past year also had the highest valuations. Health Care Technology, down 20.3%, had a P/E of 118.6 last year; Biotechnology, docked 11.2%, had a P/E of 46.

      


  • Steve Mandel Expands Consumer Cyclical Empire in 3rd Quarter

    Steve Mandel (Trades, Portfolio), a long-short equity money manager, founded Lone Pine Capital in 1997. The guru invests in companies with a fundamental analysis and bottom-up approach, which incorporates both value and growth methodologies. He expanded his consumer cyclical empire in the third quarter by investing in two travel companies and two online retail companies.


    eBay

      


  • David Tepper Expands Technology and Financial Empire

    David Tepper (Trades, Portfolio), founder of Appaloosa Management, has earned a reputation for producing top market returns among Wall Street guru investors. The distressed debt specialist primarily invests in companies at cheap prices and sells them as the stock price increases.


    During the third quarter, Tepper invested in 12 companies, five of which are in the technology or financial services sectors.

      


  • Daniel Loeb Buys Apple, Online Stocks

    Daniel Loeb (Trades, Portfolio) bought nine stocks in the third quarter, but the majority was of tech and internet companies.

    Buying 2.5 million shares, Loeb’s $282.6 million stake in Apple Inc. (NASDAQ:AAPL) was his largest new holding and one he bought after its price dipped by 9% in the first half. Loeb has weaved in and out of Apple in the past, last ousting a stake in the fourth quarter 2014 at an average price around $76. He bought back in at a quarterly average price around $106.  


  • A High-Tech Manufacturer With Excellent Growth Prospects

    When AMETEK (NYSE:AME) reported its third-quarter results Tuesday, it continued its give-and-take story of this year: gains from recent acquisitions and losses from exposure to the oil and gas industry.


    AMETEK designs and manufactures electronic instruments, electromechanical devices and other products. It specializes in products that demand high precision or accuracy, and these differentiated products help it generate strong margins.

      


  • Daniel Loeb Comments on Akarna Therapeutics

    Akarna Therapeutics TPV was a founding investor in Akarna in Q1 2015. Akarna focuses on the treatment of Nonalcoholic Steatohepatitis (NASH), also known as fatty liver disease. Akarna was attractive for several reasons:


    • Large market opportunity: Epidemiologic studies suggest that NASH affects 2 – 5% of Americans and is believed to be correlated with increasing rates of obesity, diabetes, and high cholesterol. If left untreated, NASH can lead to liver fibrosis, cirrhosis, and, ultimately, end-stage liver disease. Unfortunately, there are no currently approved treatments for NASH.
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  • Daniel Loeb Comments on Apigee

    TPV initially invested in Apigee (NASDAQ:APIC) in July 2008 when the company was known as Sonoa Systems. The company originally targeted their hardware appliance-based technology at Systems Oriented Architecture (SOA), challenging the industry-leading IBM as enterprises quickly developed to connect application elements over networks. After recognizing in 2010 that there was a transformational opportunity to apply Sonoa’s core technology, Third Point Ventures helped the company rebrand itself as Apigee and pivot to a focus on enterprise digital transformation via a software platform for APIs (Application Programming Interfaces).


    Since then, APIs have become the highway for the fast-moving digital economy. Apigee’s industry-leading API platform enables enterprises to meet the demands of customers with scalable and flexible digital technology. API platforms allow businesses to increase innovation while adapting to highly variable customer needs by securely providing shared data and services. The Apigee Edge API Management Platform connects digital experiences in a secure environment. Apigee’s API platform delivers analytics, security, developer portals, monetization, and policy enforcement. Since 2010, over 300 leading global enterprises have selected Apigee to enable their digital business, including more than 30% of the Fortune 100, four of the top five Global 2000 retail companies, and five of the top ten global telecommunications companies.

      


  • Daniel Loeb Comments on Sprint

    Sprint (NYSE:S) has been another of our best performing investments this year. We were able to initiate our position at an attractive entry point in Q1 amidst the energy-driven dislocation in the credit markets and after the bonds were downgraded in February over concerns about Sprint’s near-term corporate debt maturities. We believed we were protected on the downside since the company has minimal outstanding senior or secured facilities and could likely issue new bonds higher in the corporate capital structure to refinance the pending maturities. The company is also continuing to improve its business by strengthening the network in key areas, growing the subscriber base, opportunistically incorporating strategic partnerships, and executing an attractive cost of capital cycle.


    From Third Point's third-quarter 2016 commentary.

      


  • Daniel Loeb Comments on EMC Corp

    During the Second Quarter, Dell announced a large bond issuance to finance the acquisition of EMC Corp. While the Dell issuance is not a situation that would traditionally be popular with event-driven or distressed credit mandates, we believed market dynamics led the deal to price ~200bps wider than where we valued the bonds. Following its own LBO in 2013, Dell significantly improved its business through a variety of operational improvements and cost cutting initiatives. We believed the company would follow a similar playbook with the EMC (NYSE:EMC) acquisition and that the pro forma company would be a market leader in several areas including external storage, integrated infrastructure, and server virtualization software. Dell has stated a goal of achieving investment grade ratings within 18 – 24 months of the acquisition, setting a path to tightening in long duration bonds and to attractive returns for our portfolio.


    From Third Point's third-quarter 2016 commentary.

      


  • Daniel Loeb Gives Third Point 3rd Quarter Shareholder Letter

    Review and Outlook


    Third Point returned approximately 5% during the Third Quarter, outpacing the S&P 500 index by 1% and the CS Event -Driven index by 2%, with approximately half the net equity exposure. Results were driven by profits in each of our sub strategies – Equities, Sovereign and Corporate Debt, Structured Credit, Risk Arbitrage, and Privates – and also in each geographic area in which we invest globally. We generated alpha in each month of Q3. Despite a difficult year for hedge funds generally and a challenging start to the year for us, we have delivered positive returns for the year to date. Our results have been driven by a number of idiosyncratic opportunities that we have invested in over the past six months and we see more of the same types of ideas in our pipeline.

      


  • Arnold Schneider's Best-Performing Stocks

    Arnold Schneider is president, chief investment officer and principal of Schneider Capital Management Corp. He manages a portfolio composed of 68 stocks with a value of $534 million. The following are the best performers of his investments.


    Marathon Oil Corp. (MRO) with a market cap of $12.01 billion has gained 17.0% year to date. Schneider's stake represents 0.11% of the company's outstanding shares and 2.66% of his total assets.

      


  • 21 Questions With Michael Zapata of Sententia Capital Management

    1. How and why did you get started investing? What is your background?


    Much of my experience with finance and investing is self-taught as I grew up in humble beginnings. The first lesson I learned was to work hard and divide the first part of your paycheck to tithes and savings. For investing, the first spark came in the fifth grade through a stock pick competition. I remember picking Xerox (NYSE:XRX) for one of my three stocks because the school had a bunch of Xerox machines. That one pick propelled me to the top percentage of my school's region. Granted, I had no idea what I was doing, but that experience would stick with me.

      


  • Daniel Loeb Expands Position in Enphase Energy

    Daniel Loeb (Trades, Portfolio) of Third Point LLC increased his position in Enphase Energy Inc. (NASDAQ:ENPH) by 7.33% on Sept. 28.


    Loeb founded Third Point LLC in 1995 and serves as CEO and portfolio manager. Loeb and his firm are activist investors, meaning they take an active position in a company and pressure management for change. They follow an event-driven, value-oriented investment style.

      


  • 20 Questions With Mark Spiegel of Stanphyl Capital Management

    How and why did you get started investing? What is your background?


    I always had a casual interest in the stock market, going back to high school in the late 70s when I opened an account at a local broker and bought a stock about which I knew little except that the New York Times stock tables said it had a really low PE ratio-- I think it was 4, or something like that. It was an Amex-listed company called Outdoor Sports International (the ticker was OSI) and I think it wound up getting bought out, thereby maybe doubling the $200 or so I put into it. (I had no real idea what I was doing-- it was just semi-dumb luck!) Then in my senior year of high school I worked part time in the local Paine Webber office doing clerical work for one of the brokers-- basically, just helping him keep track of his customers' trades. In college though I mostly lost touch with stocks and when I graduated I wound up spending 17 years as a commercial and industrial real estate broker in the "outer boroughs" (Queens, Brooklyn and the Bronx) of New York City. I didn't realize it at the time, but working with a lot of different kinds of businesses actually turned into terrific "real world experience" for when I later became an investment banker and then a full-time investor. In the late 90s-- while I was still in the real estate business-- stocks were going crazy and my interest in them was rekindled. I wound up making a nice chunk of money buying low-PE microcap "value tech" stocks before they really took off like their big-cap brethren, while simultaneously losing some money shorting several of the bubble stocks because I didn't have the experience and fortitude to stick with them before they collapsed. However, on a net basis I'd made good money on the long side (and kept it-- I sold what at the time seemed to be "too early" but in fact was only "months" too early) and decided in January 2000 to sell my half of my real estate company to my partner to try to invest full-time. (Talk about top-ticking the market, and not in a good way!) I then spent a couple of years teaching myself a lot more about finance, studying scores of accounting and financial analysis textbooks, books about Wall Street history, etc. I then paid the most useful (and expensive!) stock market tuition possible: I fell in love with a microcap tech story-stock, rolled almost all of my previous profits into it and went to work for the company in a sales & marketing position. Well, being "inside" a story-stock and comparing that experience with its simultaneous press releases and earnings conference calls was one of the most valuable experiences an investor can have! After spending a year there I sold the stock at a huge loss, left the company (the product failed and most of the sales staff was laid off anyway), and decided that with a combination of my real-world business knowledge (from my commercial real estate days), book knowledge (from all the financial textbooks and history books I'd read) and story-stock knowledge (the experience I just related), I was ready to actually get a real job on Wall Street. However, this was 2003 and NO ONE was hiring, especially a 42 year-old guy with no previous jobs on the Street. Fortunately, one young guy running the New York office of a tiny investment bank saw my resume and was intrigued by the commercial real estate experience. He figured "This guy helped CEOs find their offices and warehouses and we help CEOs find their money, so if he can relate to CEOs one way he can relate to them other ways too." So he hired me on an "eat what I kill" basis (i.e., I'd get a percentage of the banking fees I brought in) and sponsored me for my Series 7 & 63 licenses, and I was off and running, cold-calling companies. I got a few deals done and simultaneously started investing again, mostly in microcaps but this time-- thanks to my own experience-- with a much better "smell detector," lol. My portfolio grew nicely and then in 2006 I went to a larger investment bank and had enough success there that I was recruited to a still larger bank in late 2007. All this time I was investing my own portfolio (even within the somewhat restricted confines of the various i-banks personal trading policies) and in 2009 I left my last i-bank to invest full-time, but this time with the goal of using my accumulated experience to open a hedge fund. I had really good returns in my personal account from 2005 through 2011 and had them audited to use as part of my fund marketing materials, and then in 2011 I opened Stanphyl.

      


  • Yum Brands Agrees to Sell Part of China Business

    Yum Brands (NYSE:YUM), the owner of KFC and Pizza Hut, has entered into a deal with Primavera Capital and an affiliate of Alibaba Group (NYSE:BABA) to sell a part of its Chinese operations as the American restaurant giant plans to spin off its China business.


    Primavera Capital, together with Ant Financial Services, will acquire a collective stake of $460 million in Yum Brand China.

      


  • Railroad Companies Offer High Margin Potential

    As of Sept. 21, several companies in the railroad industry have an efficient business operation. Two companies, Canada Pacific Railway Ltd. (NYSE:CP) and Union Pacific Corp. (NYSE:UNP), have a selling, general & administrative expense to gross profit ratio of about 30%, which suggests durable competitive advantage. With low SGA expenses, these companies have potential for high profit margins.


    The efficiency ratio

      


  • Medical Companies Offer Good Value Opportunities

    Due to the great financial crisis, most companies were undervalued based on their valuations. Based on backtesting results, the “Peter Lynch Growth with Lower Valuation” test portfolio took positions in Baxter International Inc. (NYSE:BAX) and Abbott Laboratories (NYSE:ABT), two medical companies that reached historically low price-earnings ratios. While these companies presented good value opportunities from 2007-2011, other medical companies provide better opportunities in 2016.


    Brief introduction of Peter Lynch

      


  • Daniel Loeb Exits Amgen, Trims Dow Chemical

    Daniel Loeb (Trades, Portfolio) founded Third Point LLC in 1995 and leads the firm’s research activities, portfolio and risk management. During the second quarter the guru's largest sales were as follows:


    The guru exited his stake in Amgen Inc. (AMGN) with an impact of -4.14% on the portfolio.

      


  • Carl Icahn Buys Allergan

    During the second quarter, Carl Icahn (Trades, Portfolio) of Icahn Capital Management acquired a new holding in Allergan PLC (NYSE:AGN).


    Icahn is an activist investor, meaning he takes a position in a company and pressures management for change. Typically, he buys companies with low favorability, usually right out of bankruptcy, fixes them up and sells them when the stock is more favorable.

      


  • Daniel Loeb Goes 2 for 2 in Online Media Companies

    Founded in 1995, Third Point LLC seeks long-term capital appreciation through “event-driven, value-oriented investing.” As discussed in its prospectus, Daniel Loeb (Trades, Portfolio) invests in companies that are undervalued, or mispriced, based on market and relative valuation analysis. During the second quarter, the CEO made four trades in the online media and communications industries: two news buys, one reduction and one elimination.


    Loeb purchased 3.75 million shares of Facebook Inc. (NASDAQ:FB) at an average price of $115.23 per share. The social networking company currently has a financial strength rank of 9, implying a strong business operation. As mentioned in an earlier article, Facebook has high Piotroski F-scores and Altman Z-scores. With a current Z-score of 41.73, Facebook has almost no distress.

      


  • Daniel Loeb Discloses Stake in Convicted Inside Trader's Kadmon Holdings

    Third Point’s Daniel Loeb (Trades, Portfolio) today disclosed a stake in Kadmon Holdings (NYSE:KDMN), a biopharmaceutical company that went public on July 26. The company has a famous founder, Sam Waksal, who also created ImClone before his involvement in insider trading led to SEC restrictions and prison.


    As of Monday, Loeb has reported owning 17% or 7,611,844 shares of the company, according to Real Time Picks, though he has both recent interest and a long history with it. In its pre-IPO prospectus, Loeb is listed as 13.6% owner with 6,113,020 shares, consisting of common and convertible membership units, as one of its biggest investors. Yet his investment dates back even further, to at least April, when Kadmon converted from a limited liability company to prepare for an IPO, according to filings. The company did go public, for $12 a share, and Loeb took advantage of its post-IPO dip to buy 66,828 shares on the public market on Aug. 4-5 at prices around $9.90.

      


  • John Linehan Trims Stake in Chubb

    During the second quarter John Linehan of the T Rowe Price Equity Income Fund reduced the fund's stake in Chubb (CB) at an average price of $123.26. The trade had a 0.09% impact on the portfolio. The fund now owns 319,600 shares in the company.


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  • Daniel Loeb's Third Point 2nd-Quarter 2016 Investor Letter

    Review and Outlook

      


  • Daniel Loeb Beats Market But Stocks Down

    Third Point investor Daniel Loeb (Trades, Portfolio) posted a higher return than the S&P 500 index in June, saved from negative performance by gains in his bond portfolio.


    Loeb’s Third Point Offshore Fund returned 0.8% for the month, compared to 0.3% for the index. It was the third month this year he outperformed the market, but the fund is still falling short for the year through June 30, gaining 2.1% with the index up 3.8%. Loeb’s returns have been on an upswing for the past four months, with credit boosting returns since March while long positions struggled.

      


  • Richard Perry Trims Time Warner, AIG

    Richard Perry (Trades, Portfolio) co-founded private investment management firm Perry Capital LLC in 1988, which manages about $14 billion as of August 2008. The following are his largest deals during the first quarter:


    The investor exited his stake in Williams Companies Inc. (WMB) with an impact of -10.02% on the portfolio.

      


  • Daniel Loeb Invests in Intercontinental Exchange

    During the first quarter Daniel Loeb (Trades, Portfolio) purchased 225,000 shares of Intercontinental Exchange Inc. (NYSE:ICE) at an average price of $243.36 per share.


    IntercontinentalExchange Group was originally founded in the year 2000 but changed its name to Intercontinental Exchange on June 2, 2014. The company operates regulated global marketplaces for trading and clearing an array of securities and derivatives contracts across major asset classes including interest rates, equities, equity derivatives, credit derivatives, and bonds. The company exchanges include futures in the U.S., U.K., continental Europe, Canada and Singapore and cash equities exchange and equity options exchanges in the U.S.

      


  • Is Seasonal Investing the Best Way to Approach the Market?

    What happens when the markets stop making sense? How do you even begin to analyze which stocks to invest in?


    Over the last two years, markets have defied conventional theories, rallied even when the global economies appeared to be struggling and in the process managed to sway several investors into believing that everything was on a roll.

      


  • Daniel Loeb Comments on Danaher

    Danaher (DHR) is a diversified multi-industrial company with an increasing exposure to life science and healthcare-oriented businesses. Operating across five different business segments and built up through over 400 acquisitions over the company’s history, the cornerstone for Danaher’s successful integration and value creation strategy has been the


    Danaher Business System (DBS). Adapted from Japanese principles of kaizen, DBS has evolved into a set of processes and corporate culture revolving around continuous improvement, helping to drive organic growth and annual margin improvement across Danaher’s portfolio.

      


  • Daniel Loeb Comments on Chubb Ltd.

    Chubb Ltd. (CB) is the product of ACE Limited’s acquisition of The Chubb Corporation which closed in January. The deal combined two world-class operators that have consistently put up ~90% combined ratios – almost 900bps better than North American peers – and have compounded book value at 10%+ the past decade, more than double that of peers. The new Chubb is the largest public pure-play P&C company by underwriting income. It also has a number of factors we look for in a pro forma situation: an A+ CEO in Evan Greenberg; complementary fit across products, distribution, and geography; and a plan that is less focused on short-term cost savings than long-term strategic opportunities for growth, which are abundant.


    Chubb’s scale and focus on growth could not come at a better time as certain competitors scale back operations to satisfy shareholder demands. We are willing to forego short-term cost cuts or buybacks to own a franchise that is a long-term winner with the premier franchise in US high-net-worth insurance, #1 share in global professional lines, and an enviable global platform with leading A&H and personal lines in Asia and Latin America. We view Chubb as a high-quality compounder in the financials space, with double-digit earnings growth potential over the next few years. Critically, this earnings power is far less sensitive to rates and credit quality than fundamental execution.

      


  • Daniel Loeb Comments on Charter Communications

    Charter Communications (CHTR) is a domestic provider of voice, video, and high-speed data. In May 2015, Charter announced the acquisition of Time Warner Cable. This is a transformational deal that quadruples the company’s scale while driving substantial operating efficiencies. Importantly, the pro forma company will be led by Charter’s current CEO, Tom Rutledge, who we view as one of the best operators in the industry.


    New Charter is well positioned to capture market share from satellite and telco competitors given its advantaged high-speed data product. In addition, Mr. Rutledge’s track record of boosting video penetration, driving down service costs, and executing large network transformations at legacy Charter makes us optimistic about his leadership of the new entity.

      


  • Daniel Loeb Comments on Molson Coors Brewing Company

    TAP (NYSE:TAP), on the other hand, stands to benefit greatly from acquiring divested assets. The company is picking up the remaining 58% share of the MillerCoors US joint venture that it does not already own, the perpetual rights to import legacy SAB global brands such as Peroni in the US, and the global rights to the Miller brand. The transaction is highly accretive for TAP given the sheer size of the acquired assets. It also gives the company full control over its most important market, something that ought to improve operational effectiveness and increase the long-term strategic value of the company to a potential acquirer as the global beer industry continues to consolidate. As is the case with BUD, we believe TAP will compound nicely over the next several years as the market more fully appreciates the earnings power and strategic optionality of the pro forma company.

    From Daniel Loeb (Trades, Portfolio)'s first quarter 2016 shareholder letter.   


  • Daniel Loeb Comments on Anheuser Busch InBev

    The long awaited acquisition of SAB Miller (SAB) by Anheuser Busch InBev (BUD) announced late last year created two interesting pro forma situations. The deal, expected to close in the second half of 2016, will combine the two largest global brewers and create an unrivaled player with strong pricing power in an increasingly consolidated global industry. It will also transform Molson Coors (TAP) into a stronger regional competitor following the acquisition of certain SAB assets that must be sold for anti-trust reasons.


    Starting with BUD, we think the stock ought to grow nicely over the next several years as the true earnings power of the new company is revealed. Part of the gains will come from improving the underlying profitability of SAB, as operational control of its assets is transferred to BUD’s highly regarded management team led by CEO Carlos Brito. Another part will come from the capture of deal-related cost and revenue synergies, as duplication is eliminated and BUD’s global brands like Budweiser, Corona, and Stella are rolled out to legacy SAB markets in Africa and Latin America. Finally, the rest should come from financial engineering as BUD’s under-levered balance sheet is monetized to help finance the transaction. We also think the new company will likely command a higher valuation as SAB’s emerging market exposure will be accretive to top line growth over time.

      


  • Daniel Loeb Comments on Dow Chemical

    We are encouraged by the latest developments in our investment in Dow (DOW) which announced a merger with DuPont in December. In February, the company revealed that long-time CEO Andrew Liveris will be stepping aside not long after the merger’s completion. DuPont’s CEO, Ed Breen, is a proven operator and capital allocator. Breen made his mark by streamlining Tyco, a long-time industrial conglomerate, splitting the company into focused units and thus created enormous shareholder value. He brings an unbiased perspective and is not afraid to challenge the status quo, two qualities that will be essential in leading Dow/DuPont given the histories of both of these conglomerates.


    We continue to believe there is potential for operational improvement at Dow that would be incremental to the $3 billion announced synergy target; in aggregate, approximately $5 billion of earnings improvement could be unlocked. The merger structure preserves both companies’ strong balance sheets which, combined with fading Sadara and Gulf Coast CapEx, should allow for meaningful capital return while maintaining a strong investment grade balance sheet. Taking all of these factors into account, we believe the pro forma entity is capable of generating $5.50 – 6.00 of EPS in 2018. Given that these earnings will consist of contributions from several focused spinoffs, we also believe that multiple expansion is likely.

      


  • Quality Guru Stocks Include Amgen, Comcast

    According to GuruFocus’ All-in-One Screener, the following stocks have a high business predictability rating and at least five gurus are shareholders in the companies.


    WestRock Co. (WRK)

      


  • Why Dan Loeb Is Adding to His Green Brick Position

    Green Brick Partners (NASDAQ:GRBK) is a land development company with a bank of land in favorable parts of the Dallas and Atlanta areas. In addition it owns controlling interests (of exactly 50%) in four homebuilding companies.


    The company was set up and customized around 2008 by guru David Einhorn (Trades, Portfolio), of Greenlight Capital and Jim Brickman, who was going to lead it. Brickman has 35 years of experience in the business. Einhorn owns ~50% of the equity and Brickman around 10% through various names. They called it Green Brick. Get it?

      


  • Daniel Loeb Adds to Stake in Green Brick Partners

    Daniel Loeb (TradesPortfolio) added 99,943 shares to his stake in Green Brick Partners Inc. (NASDAQ:GRBK) on April 8.


    Green Brick Partners (formerly known as BioFuel Energy Corp.) was incorporated as a Delaware corporation on April 11, 2006. The company began its original operations with the intention of solely investing in BioFuel Energy LLC, a limited liability company organized on Jan. 25, 2006. The company's goal was to build and operate ethanol production facilities in the Midwestern U.S.

      


  • Art Collecter Daniel Loeb Adds Sothebys to Portfolio

    Guru Daniel Loeb (Trades, Portfolio) is a California native who grew up in Santa Monica. Loeb received his bachelor's at Columbia and spent the next 11 years working for various firms including Warburg Pincus, a private equity firm. He then landed a job working as director of corporate development at Island Records, a record label where he focused on securing debt financing.


    After his time at Island Records, Loeb seized an opportunity to work as a risk arbitrage analyst at Lafer Equity Investors, and then from 1991 to 1994 he worked as senior vice president in the distressed debt department at Jefferies LLC. Loeb increased his knowledge and experience about bankruptcy analysis, trading bank loans and selling distressed securities. In 1995, Loeb founded Third Point Management LLC, which has grown to a total value of about $9.86 billion.

      


  • Dan Loeb's Third Point Portfolio Highly Concentrated

    Daniel Loeb´s Third Point disclosed an equity portfolio valued at some $9.86 billion at the end of the fourth quarter of 2015. The equity portfolio is mainly invested in Health Care (53%), Materials (17%) and Consumer Discretionary (11%) stocks.


    Among the 10 largest holdings from Loeb’s equity portfolio (which compose 82.43% of the total portfolio value) at the end of the fourth quarter, the three top positions are Baxter International Inc. (NYSE:BAX), Allergan PLC (NYSE:AGN) and Amgen Inc. (NASDAQ:AMGN).

      


  • 3 Attractive Asset Management Firms


    Charlie Bobrinskoy recently appeared on CNBC and shared his insights regarding several of the value investing firm’s long positions.

      


  • Third Point's Quarterly Letter

    Markets are off to a tumultuous start for the year, as many indices show1: the S&P (- 10.3%); the NASDAQ (-14.7%); the DAX (-18.5%); the NIKKEI (-17.4%); and the Shanghai Composite index (-21.9%). Last year’s darlings like Amazon (NASDAQ:AMZN) (-25.5%) and Netflix (NASDAQ:NFLX) (-24.5%) have fallen meaningfully in 2016, but hardest hit have been some companies seen as “value” stocks like Williams (NYSE:WMB) (-48.3%), Bank of America (NYSE:BAC) (-33.7%), and Morgan Stanley (NYSE:MS) (- 31.4%). We believe the indices’ drastic declines actually fail to capture the true carnage revealed when you take a closer look at the breadth of S&P companies experiencing massive losses. In some cases, these losses may represent permanent value destruction. The 2015 market we dubbed a “Haunted House” feels about as scary as the Disney (NYSE:DIS) kids’ ride “It’s a Small World” when compared to 2016.


    Last August, we recognized that a global tidal shift in monetary policy and a reversal in central bank policy would likely cause fund flows out of many asset classes. We reduced our exposure to companies that were economically sensitive or tied to China or to commodity pricing while significantly increasing our short exposure. For the remainder of 2015, we generated profits on the short side but were hurt by our decision to seek safe haven in health care names and other companies we believed would remain sheltered from the new world order. We succeeded in avoiding calamitous losses in the portfolio and preserved our clients’ capital in 2015.

      


  • Daniel Loeb Buys Axalta, Morgan Stanley, Chubb

    Daniel Loeb (Trades, Portfolio) made three new additions to his portfolio in the fourth quarter: Chubb Ltd. (NYSE:CB), Morgan Stanley (NYSE:MS) and Axalta Coating System Ltd. (NYSE:AXTA).


    Loeb manages the event-driven, value-investing hedge fund Third Point, which has $17.5 billion in assets. Third Point’s main Offshore Fund was down 3.4% in January, versus a 5% loss for the S&P 500. He has achieved a historical annualized return of 15.9%, compared to 7% for the index.

      


  • Dan Loeb's Third Point Re a Good Bet in Declining Markets

    As we wrote in our previous article on Third Point Re (NYSE:TPRE), Daniel Loeb's investment record is beyond reproach. Since 1995, he has generated one of the best long-term investment track records in history, averaging 19.5% annual returns for over 20 years.


    As you can see below, however, the past year or two has been tough for value investors. In 2014 and parts of 2015, his fund lagged the markets. Third Point Re (his reinsurance company that invests in his hedge fund's strategy) is down almost 40% from its highs in 2014. Even if you don't believe that markets will continue to rise, buying into his investment strategy through shares of Third Point Re may be a great idea.

      


  • Facebook, McDonald's Among Guru Stocks Outperforming S&P 500

    The following are some of the stocks that outperformed the S&P 500 Index over the last 12 months and have been bought by gurus during the last quarter.


    Facebook Inc. (FB) with a market cap of $327.41 billion, during the last 12 months has outperformed the S&P 500 Index by 55.7% and currently, 14 gurus are holding the stock that has returned 14% year-to-date and 205% during the last five years. It is now trading with a P/E ratio of 116.45 but according to the DCF calculator, it looks overpriced by 1,000%.

      


  • Dan Loeb's Third Point Re a Tremendous Value

    It’s not often that you can buy into a legendary value investor hedge fund at a discount. Third Point Re (NYSE:TPRE) might be the exception.


    Ever since Warren Buffett’s Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) found long-term success, hedge fund managers have scrambled to set up their own insurance companies. In this structure, the insurance entity focuses on underwriting policies, while the premiums are managed by the hedge fund manager.

      


  • Stocks Trading With Low PS Ratio, Wide Margin of Safety

    According to GuruFocus' All-In-One Screener, the following are stocks of companies with a market cap above $5 billion that are trading with a very low P/S ratio.


    Dow Chemical Co. (DOW) is trading at about $41 with a P/S ratio of 0.98, a trailing 12-month P/E multiple of 10.69 and an estimated forward P/E multiple of 10.49. The company has a market cap of $47.87 billion and over the last 10 years, the stock has dropped by 3%. During the last 52 weeks, the price has been as high as $57.10 and as low as $35.11.

      


  • Jana Partners Dumping Half of Hertz Holdings

    Guru Jana Partners (Trades, Portfolio) seriously started racking up its exposure to Hertz (NYSE:HTZ) at the end of 2014.


    Ultimately Jana Partners (Trades, Portfolio) owned about 41 million shares of the car rental business that owns the Hertz, Dollar, Thrifty and Firefly brands. Its network of rentals spans the globe with storefronts across North America, Europe, Latin and South America, Asia, Australia, Africa, the Middle East and New Zealand. Back at the end of August the company started decreasing its exposure, but now it has seriously cut back on its stake, selling 44.70% at once.

      


  • Richard Pzena's Undervalued Stocks Trading With Low P/Es

    Richard Pzena is founder and co-chief investment officer of Pzena Investment Management LLC with more than $24 billion under management. Pzena started the firm in 1995. He earned a B.S. summa cum laude and an M.B.A. from the Wharton School of the University of Pennsylvania in 1979 and 1980.


    The following are the stocks of his portfolio that are undervalued and are trading with a low P/E ratio.

      


  • Dan Loeb's Largest 3rd Quarter Investment Was Kraft Heinz Co.

    Billionaire Daniel Loeb (Trades, Portfolio) founded the hedge fund Third Point in 1995, which manages about $17 billion. Loeb is an activist investor and Third Point follows an event-driven, value-oriented investment style.

    During the third quarter, Loeb added four new holdings to the portfolio, while closing out 17 other positions.  


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